Strategy, Planning, and Operation

Transcription

1 GLOBAL EDITION Supply Chain Management Strategy, Planning, and Operation FIFTH EDITION Sunil Chopra Peter Meindl

2 Editorial Director: Sally Yagan Editor in Chief: Donna Battista Senior Acquisitions Editor: Chuck Synovec Senior Acquisitions Editor, Global Editions: Steven Jackson Print and Media Editor, Global Editions: Leandra Paoli Editorial Project Manager: Mary Kate Murray Director of Marketing: Maggie Moylan Executive Marketing Manager: Anne Fahlgren International Marketing Manager: Dean Erasmus Production Project Manager: Clara Bartunek Manager Central Design: Jayne Conte Cover Designer: Jodi Notowitz Manager, Rights and Permissions: Estelle Simpson Cover Art: Xiaode/Dreamstime.com Media Project Manager: John Cassar Media Editor: Sarah Peterson Full-Service Project Management: Abinaya Rajendran, Integra Software Services Pvt. Ltd. Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: Pearson Education Limited 2013 The rights of Sunil Chopra and Peter Meindl to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act Authorised adaptation from the United States edition, entitled Supply Chain Management: Strategy, Planning, and Operation, 5th Edition, ISBN: by Sunil Chopra and Peter Meindl, published by Pearson Education, Inc., All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6 10 Kirby Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published as part of the services for any purpose. All such documents and related graphics are provided as is without warranty of any kind. Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement. In no event shall Microsoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from the services. The documents and related graphics contained herein could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time. Partial screen shots may be viewed in full within the software version specified. Microsoft and Windows are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation. Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text. ISBN 13: ISBN 10: British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Typeset in Times 10/12 Times Roman by Integra Software Services Pvt. Ltd Printed and bound by Courier/Kendallville in The United States of America The publisher's policy is to use paper manufactured from sustainable forests.

3 Supply Chain Management: Global Edition - PDF - PDF - PDF Table of Contents Cover Contents Preface Part I Building a Strategic Framework to Analyze Supply Chapter 1 Understanding The Supply Chain 1.1 What Is a Supply Chain? 1.2 The Objective of a Supply Chain 1.3 The Importance of Supply Chain Decisions 1.4 Decision Phases in a Supply Chain 1.5 Process Views of a Supply Chain 1.6 Examples of Supply Chains 1.7 Summary of Learning Objectives Chapter 2 Supply Chain Performance: Achieving Strategic 2.1 Competitive and Supply Chain Strategies 2.2 Achieving Strategic Fit 2.3 Expanding Strategic Scope 2.4 Challenges to Achieving and Maintaining Strategic Fit 2.5 Summary of Learning Objectives Chapter 3 Supply Chain Drivers and Metrics 3.1 Financial Measures of Performance 3.2 Drivers of Supply Chain Performance 3.3 Framework for Structuring Drivers 3.4 Facilities 3.5 Inventory 3.6 Transportation 3.7 Information 3.6 Transportation 3.8 Sourcing 3.9 Pricing 3.10 Summary of Learning Objectives Case Study: Seven-Eleven Japan Co.

4 Case Study: Financial Statements for Wal-Mart Stores Inc. Part II Designing the Supply Chain Network Chapter 4 Designing Distribution Networks 4.1 The Role of Distribution in the Supply Chain 4.2 Factors Influencing Distribution Network Design 4.3 Design Options for a Distribution Network 4.4 Online Sales and the Distribution Network 4.5 Distribution Networks in Practice 4.6 Summary of Learning Objectives Case Study: Blue Nile and Diamond Retailing Chapter 5 Network Design In The Supply Chain 5.1 The Role of Network Design in the Supply Chain 5.2 Factors Influencing Network Design Decisions 5.3 Framework for Network Design Decisions 5.4 Models for Facility Location and Capacity Allocation 5.5 Making Network Design Decisions in Practice 5.6 Summary of Learning Objectives Case Study: Managing Growth at SportStuff.com Case Study: Designing the Production Network at CoolWipes Chapter 6 Designing Global Supply Chain Networks 6.1 The Impact of Globalization on Supply Chain Networks 6.2 The Offshoring Decision: Total Cost 6.3 Risk Management in Global Supply Chains 6.4 Discounted Cash Flows 6.5 Evaluating Network Design Decisions Using Decision Trees 6.6 To Onshore or Offshore: Evaluation of Global Supply Chain Design Decisions Under Uncertainty 6.7 Making Global Supply Chain Design Decisions Under Uncertainty in Practice 6.8 Summary of Learning Objectives Case Study: BioPharma, Inc. Case Study: Global Supply Design for the Future: Nokia Part III Planning and Coordinating Demand and Supply in a Supply Chain Chapter 7 Demand Forecasting In a Supply Chain

5 7.1 The Role of Forecasting in a Supply Chain 7.2 Characteristics of Forecasts 7.3 Components of a Forecast and Forecasting Methods 7.4 Basic Approach to Demand Forecasting 7.5 Time-Series Forecasting Methods 7.6 Measures of Forecast Error 7.7 Selecting the Best Smoothing Constant 7.8 Forecasting Demand at Tahoe Salt 7.9 The Role of IT in Forecasting 7.10 Risk Management in Forecasting 7.11 Forecasting in Practice 7.12 Summary of Learning Objectives Case Study: Specialty Packaging Corporation, Part A Chapter 8 Aggregate Planning In a Supply Chain 8.1 The Role of Aggregate Planning in a Supply Chain 8.2 The Aggregate Planning Problem 8.3 Aggregate Planning Strategies 8.4 Aggregate Planning Using Linear Programming 8.5 Aggregate Planning in Excel 8.6 Building a Rough Master Production Schedule 8.7 The Role of IT in Aggregate Planning 8.8 Implementing Aggregate Planning in Practice 8.9 Summary of Learning Objectives Case Study: Specialty Packaging Corporation, Part B Chapter 9 Sales and Operations Planning: Planning Supply 9.1 Responding to Predictable Variability in the Supply Chain 9.2 Managing Supply 9.3 Managing Demand 9.4 Implementing Sales and Operations Planning in Practice 9.5 Summary of Learning Objectives Case Study: Mintendo Game Girl Chapter 10 Coordination In a Supply Chain

6 10.1 Lack of Supply Chain Coordination and the Bullwhip Effect 10.2 The Effect on Performance of Lack of Coordination 10.3 Obstacles to Coordination in a Supply Chain 10.4 Managerial Levers to Achieve Coordination 10.5 Continuous Replenishment and Vendor-Managed Inventories 10.6 Collaborative Planning, Forecasting, and Replenishment (CPFR) 10.7 Achieving Coordination in Practice 10.8 Summary of Learning Objectives Part IV Planning and Managing Inventories in a Supply Chain Chapter 11 Managing Economies of Scale In a Supply Chain: 11.1 The Role of Cycle Inventory in a Supply Chain 11.2 Estimating Cycle InventoryRelated Costs in Practice 11.3 Economies of Scale to Exploit Fixed Costs 11.4 Economies of Scale to Exploit Quantity Discounts 11.5 Short-Term Discounting: Trade Promotions 11.6 Managing Multiechelon Cycle Inventory 11.7 Summary of Learning Objectives Case Study: NAN Appendix 11A: Economic Order Quantity Chapter 12 Managing Uncertainty In a Supply Chain: Safety 12.1 The Role of Safety Inventory in a Supply Chain 12.2 Determining the Appropriate Level of Safety Inventory 12.3 Impact of Supply Uncertainty on Safety Inventory 12.4 Impact of Aggregation on Safety Inventory 12.5 Impact of Replenishment Policies on Safety Inventory 12.6 Managing Safety Inventory in a Multiechelon Supply Chain 12.7 The Role of IT in Inventory Management 12.8 Estimating and Managing Safety Inventory in Practice 12.9 Summary of Learning Objectives Case Study: Managing Inventories at ALKO Inc Case Study: Shall it be postponed? Appendix 12A: The Normal Distribution Appendix 12B: The Normal Distribution in Excel

7 Appendix 12C: Expected Shortage Cost per Cycle Appendix 12D: Evaluating Safety Inventory for Slow-Moving Items Chapter 13 Determining the Optimal Level of Product 13.1 The Importance of the Level of Product Availability 13.2 Factors Affecting Optimal Level of Product Availability 13.3 Managerial Levers to Improve Supply Chain Profitability 13.4 Setting Product Availability for Multiple Products Under Capacity Constraints 13.5 Setting Optimal Levels of Product Availability in Practice 13.6 Summary of Learning Objectives Appendix 13A: Optimal Level of Product Availability Appendix 13B: An Intermediate Evaluation Appendix 13C: Expected Profit from an Order Appendix 13D: Expected Overstock from an Order Appendix 13E: Expected Understock from an Order Appendix 13F: Simulation Using Spreadsheets Part V Designing and Planning Transportation Networks Chapter 14 Transportation In a Supply Chain 14.1 The Role of Transportation in a Supply Chain 14.2 Modes of Transportation and Their Performance Characteristics 14.3 Transportation Infrastructure and Policies 14.4 Design Options for a Transportation Network 14.5 Trade-Offs in Transportation Design 14.6 Tailored Transportation 14.7 The Role of IT in Transportation 14.8 Risk Management in Transportation 14.9 Making Transportation Decisions in Practice Summary of Learning Objectives Case Study: Designing a Sustainable Distribution Network for Euro-Grain Part VI Managing Cross-Functional Drivers in a Supply Chain Chapter 15 Sourcing Decisions In a Supply Chain 15.1 The Role of Sourcing in a Supply Chain 15.2 In-House or Outsource 15.3 Third- and Fourth-Party Logistics Providers 15.4 Using Total Cost to Score and Assess Suppliers

8 15.5 Supplier SelectionAuctions and Negotiations 15.6 Contracts, Risk Sharing, and Supply Chain Performance 15.7 Design Collaboration 15.8 The Procurement Process 15.9 Designing a Sourcing Portfolio: Tailored Sourcing Risk Management in Sourcing Making Sourcing Decisions in Practice Summary of Learning Objectives Chapter 16 Pricing and Revenue Management In a Supply 16.1 The Role of Pricing and Revenue Management in a Supply Chain 16.2 Pricing and Revenue Management for Multiple Customer Segments 16.3 Pricing and Revenue Management for Perishable Assets 16.4 Pricing and Revenue Management for Seasonal Demand 16.5 Pricing and Revenue Management for Bulk and Spot Contracts 16.6 Using Pricing and Revenue Management in Practice 16.7 Summary of Learning Objectives Chapter 17 Information Technology In a Supply 17.1 The Role of IT in a Supply Chain 17.2 The Supply Chain IT Framework 17.3 Customer Relationship Management 17.4 Internal Supply Chain Management 17.5 Supplier Relationship Management 17.6 The Transaction Management Foundation 17.7 The Future of IT in the Supply Chain 17.8 Risk Management in IT 17.9 Supply Chain IT in Practice Summary of Learning Objectives Chapter 18 Sustainability and The Supply Chain 18.1 The Role of Sustainability in a Supply Chain 18.2 The Tragedy of the Commons 18.3 Key Metrics for Sustainability 18.4 Sustainability and Supply Chain Drivers 18.5 Closed-Loop Supply Chains

9 Index 18.6 Summary of Learning Objectives